-
Cigarettes on display in a shop - Source: ONE News
The Food and Grocery Council says banning all visible tobacco retail displays makes current commercial agreements ineffective.
MPs have revealed radical plans to cut the smoking rate, including banning displays, putting tobacco products in plain packaging and extending non-smoking areas to cars.
The council says the move could potentially deny companies the use of their trademarks.
"We believe that this approach is an overly punitive measure that will introduce significant costs to the supply chain," Food and Grocery chief executive Katherine Rich said.
The precedent of legislating to void commercial grocery contract agreements concerns the council, said Rich.
"From the perspective of New Zealand grocery suppliers, it's a serious intervention for any government to cut across existing commercial contracts and to change commercial laws to void supermarket supply agreements, which are largely standard regardless of the grocery product."
And she said plain packaging raises wider issues for all brand owners selling grocery products in New Zealand.
"Denying grocery businesses the right to use their trademarks will mean that New Zealand could be buying into an international intellectual property debate that will put our trade officials in a difficult position."
The New Zealand Association of Convenience Stores (NZACS) said it supports recommendations to increase penalties for selling tobacco to minors, but doesn't support recommendations that force significant costs onto retailers.
Chairman Roger Bull said NZACS believes it is relatively simple solution to better enforce existing tobacco regulations.
"If there was greater enforcement, backed by retailer education of the existing laws, then tobacco products can be kept out of the hands of young people."
Bull said officials seem to be intent on wanting to force additional laws and regulations "that will result in significant costs and red-tape onto New Zealand retailers who sell tobacco".
"Forcing retailers to cough up thousands of dollars to hide tobacco away from their customers will do little aside from placing greater risks on retailers who will be forced to constantly hunt for a product that makes up to 40% of their sales."
Latest NZ News Video
-
Kiwi speaks to TVNZ7 from Everest base camp (1:59)
-
Immigration advisor Bill Milnes discusses claims (4:34)
-
Dance to save Shakti service (0:41)
